Four Winds Field expansion set to finish by 2026 if $45 million bond passes in South Bend

SOUTH BEND — South Bend officials this week are pushing a $45 million plan that will mainly fund a new upper deck of seats and an events venue at the city-owned ballpark where the South Bend Cubs play.

The South Bend Redevelopment Authority voted Tuesday to allow the city to move forward with a $45 million bond issuance to pay for improvements to Four Winds Field at Coveleski Stadium. The expansion isn't expected to raise local taxes after South Bend Cubs owner Andrew Berlin lobbied Indiana legislators last year to change a law governing tax collection at city-owned facilities for tourism and entertainment.

The main change at Four Winds Field will be an upper deck of seats expected to boost capacity by nearly 50%, according to Berlin. The ballpark seats 5,000, but record attendance numbers have surpassed 8,000 in recent summers. Berlin said he wants more than 10,000 people at the Minor League Baseball franchise's games.

The stadium was built in 1987 and needs extensive repairs to its electrical and plumbing systems, according to Public Works Director Eric Horvath. But the money will also pay for a new 20,000-square-foot building beyond the left field wall that hosts corporate events and parties. The city will renovate the splash pad, concessions and restrooms, as well.

If the South Bend Common Council approves the bond issuance on April 8, Horvath said, construction will begin after the Cubs' 2024 season ends around September. The South Bend Redevelopment Commission will also host a public hearing on the plan Thursday.

The upper deck will be largely finished by the beginning of the 2025 season, next April, and remaining upgrades will occur before the start of the 2026 season. Construction isn't expected to cancel any home games.

How a new law allows expansion without more taxes

The new law raises South Bend's upper limit for annual collection of sales and income taxes related to city-owned sports and tourism sites from $2 million to $5 million over a 20-year period. While the first $2.5 million collected must be spent on capital improvements at Four Winds Field, according to the new law, the rest can be used at other city-owned sites such as Century Center and the Morris Performing Arts Center.

Without the new law, the $3 million difference in sales and income tax revenues would first go downstate before being disbursed to municipal governments. The change allows South Bend to benefit directly by retaining more tax money each year.

A city analysis found that the professional sports and development area targeted by the law collects more than $7 million in sales and income taxes most years. By exceeding the $5 million limit, Horvath said, the tax revenues virtually guarantee that upgrades won't be paid for with a new levy on local taxpayers.

But a "tax backup" is included in the plan because it allows the city to borrow money in the bond market at a lower interest rate, according to Randy Rompola, an attorney for Barnes and Thornburg who served as the city's bond counsel. A lower interest rate means the city pays back less money over the 20-year term of the bond.

"We have a lot of comfort knowing that the revenues will be there and the tax levy won't be necessary," Rompola said.

Caleb Bauer, executive director of the Department of Community Investment, said Cubs games are one of the main attractions in downtown South Bend. More than 300,000 fans make the trip to Four Winds Field each year, according to Cubs leaders.

Bauer said investing in the stadium ensures South Bend remains an attractive venue for professional baseball franchises. Dozens of teams lost their coveted affiliations with a Major League Baseball franchise in 2020, while South Bend's team remains the High-A affiliate of the Chicago Cubs. Berlin is also a part owner of the Chicago franchise.

"We think this investment is part of a long-term commitment from the Cubs that we'll be looking at as well," Bauer said.

Email South Bend Tribune city reporter Jordan Smith at JTsmith@gannett.com. Follow him on X: @jordantsmith09

This article originally appeared on South Bend Tribune: South Bend has $45 million plan to expand South Bend Cubs stadium